FxWirePro: USD/JPY subdued below 113 handle, Yen's safe haven demand on the rise on N.Korea headlines

• Japanese Yen's safe haven demand on the rise in the Asian session following North Korea’s latest missile adventure.
   
• North Korean news agency, KCNA cites Kim Jong Un as saying - the country's strategic power has been elevated with possession of atomic, hydrogen bombs and ICBM.
   
• China and South Korea favor talks to lower tensions, but the US has made it clear that negotiations could happen only if Kim halts his nuclear program.
   
• USD/JPY down 0.32% as we write, remains subdued below 113 handle, likely to be driven by geopolitical news.
   
• Technically, the pair is holding 5-DMA support at 112.82, break below could see drag upto 111.75 (100-DMA).
   
• Focus also on FOMC minutes due later in the US session amidst an otherwise lacklustre market.
   

Support levels - 112.82 (5-DMA), 111.75 (100-DMA), 111.70 (50-DMA)

Resistance levels - 113, 113.79 (May 16 high), 114, 114.63 (61.8% Fib retrace of 118.662 to 108.130 fall)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-USD-JPY-holds-100-DMA-support-good-to-go-long-on-breakout-above-11275-785716) has hit TP1.

Recommendation: Book partial profits at highs. Watchout for break below 5-DMA for downside upto 111.75. 

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